Bajaj Finance Trades Ex-Date for 4:1 Bonus and 1:2 Split- Investor Guide

Shares of Bajaj Finance will be in focus on Monday, 16th Jun

e, as the stock began trading ex-bonus and ex-split. The company had earlier approved a 4:1 bonus share issue and a 1:2 stock split, both of which received shareholder approval and are aimed at enhancing liquidity and broadening retail participation.

Following the adjustments, each existing shareholder will receive four bonus equity shares for every one equity share held, and every equity share with a face value of ₹2 has been subdivided into two shares of ₹1 each.

The record date to determine eligible shareholders for both corporate actions is Tuesday, 18 June. Bajaj Finance's dividend record date was May 30 for the ₹44 final dividend. As of 11:45 AM, on the NSE, the stock is trading at 938.50 with an increase of 0.54%.

Stock performance and market response

On the Bombay Stock Exchange (NSE), Bajaj Finance shares closed 0.32% lower at ₹9,334.15 on Friday, and after factoring in the 4:1 bonus and 1:2 split, the theoretical adjusted price came down significantly. The price movement is not indicative of a decline in value but a mathematical adjustment reflecting the expanded capital base.

Despite the adjusted quote, market analysts maintain a positive view on the company, citing strong fundamentals, a diversified lending portfolio, and robust digital capabilities.

Objective: Improved liquidity and affordability

The bonus issue and stock split are part of the company’s strategy to make the stock more accessible to retail investors. Bajaj Finance’s high share price has been seen as a deterrent for small investors. With the combined effect of the bonus and split, the number of outstanding shares increases tenfold, effectively reducing the per-share price and enhancing daily trading volumes.

This move aligns with broader trends among large-cap companies seeking to widen investor participation and improve liquidity in the secondary market.

Fundamentals remain intact

The corporate actions do not affect the company’s underlying business, earnings potential, or valuations. Bajaj Finance continues to enjoy strong brand recognition, a consistent record of growth in assets under management (AUM), and a healthy net interest margin (NIM). Its recent quarterly results demonstrated resilience amid evolving macroeconomic conditions, with net profit rising 21% year-on-year and stable asset quality metrics.

Brokerages, including CLSA and Jefferies, have maintained positive ratings on the stock, highlighting long-term growth drivers such as consumer finance, digital transformation, and cross-sell opportunities.

What lies ahead for shareholders

Investors holding Bajaj Finance shares as of the record date will receive bonus shares and benefit from the adjusted shareholding post-split. While the face value and total share count will change, the overall investment value remains unaffected in the short term.

From a market perspective, increased float and affordability could enhance trading momentum in the coming weeks, especially from retail investors and high-frequency traders. However, long-term performance will continue to hinge on the company’s execution and broader credit cycle trends.

Conclusion: Technical change, strategic intent

Bajaj Finance’s bonus and stock split are technical in nature but strategically aligned with its objective to democratise ownership and improve liquidity. With fundamentals intact and execution on track, the move positions the stock for broader market participation while maintaining investor confidence in the company’s long-term prospects.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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